At risk of redundancy

TDMBMK

Our (joint) mortgage offer is due next week and then we are due to exchange contracts on a new build property. Today my husband found out he is ‘at risk’ of redundancy, but he won’t know if he is actually being made redundant for another month. Do we legally have to tell our lender about this (and risk having our mortgage offer withdrawn) as he may not actually get made redundant. We have to sign the mortgage offer this week but don’t want to do anything fraudulent. We are not worried about affordability as it’s a short term interest only mortgage which we will be paying off once we sell the property we are currently living in (which isn’t involved in the purchase of the new build). Thank you. 

MWT

Read what you have already signed and see exactly how your obligation to notify them of changes in your circumstances is worded.

If you have already been asked to confirm that you are not at risk of redundancy and he is now formally at risk then you would have to tell them of the change in circumstances.

Check the wording carefully...

Thrugelmir

You've agreed in making the mortgage application to inform the lender of any material changes in circumstances. While you say that affordability is fine. What if things aren't as smooth as you plan. 

Brock_and_Roll

I would say there is a difference between thinking or hearing rumours that their might be job cuts - and actually receiving formal notice from your employers. Look at the offer terms very carefully.

MWT

There is a step before a notice of redundancy which depending on the wording of what has been signed will trigger notification to a lender, it is when, as described above, an employee is given a formal notification that they are 'at risk'.

This isn't just casual chatter or being worried about the possibility, it is a documented step in the consultation process that has to precede actual redundancy notifications and if received may need to be notified to the lender.